{"id":9690,"date":"2023-04-25T12:00:38","date_gmt":"2023-04-25T16:00:38","guid":{"rendered":"https:\/\/www.realtyhop.com\/blog\/?p=9690"},"modified":"2023-04-25T12:01:24","modified_gmt":"2023-04-25T16:01:24","slug":"upstate-new-york-housing-market","status":"publish","type":"post","link":"https:\/\/www.realtyhop.com\/blog\/upstate-new-york-housing-market\/","title":{"rendered":"Upstate New York Housing Market Explained"},"content":{"rendered":"

Do you long for open space and the sight of spectacular foliage in autumn? If so, the Empire State has much to offer outside the Big Apple. A short drive from New York City<\/a>, upstate New York features vibrant, walkable small towns, a plethora of natural beauty, and a generally slower pace of life. If you\u2019re tired of the breakneck pace of urban life and thinking about moving, you\u2019ll find upstate homes listed at lower prices than similar-sized properties in the city. Here\u2019s a handy guide to the current real estate market throughout the Catskills and Hudson Valley region.<\/p>\n

State of the Upstate Market<\/h2>\n

The recent COVID-19 pandemic affected the housing market and shifted the priorities of potential homebuyers. Those who previously considered purchasing property in New York City expanded their possibilities to other towns throughout the state. A shift to remote work, combined with a desire for more affordable homes with increased square footage, left buyers seeking towns with lower population densities. Buyers could no longer justify the high real estate prices in areas like Manhattan<\/a> or Brooklyn<\/a> if they were not commuting to the office or taking advantage of the city\u2019s conveniences, activities, and opportunities. As a result, like many other suburban and rural areas of the country, the Catskills and the Hudson Valley experienced a housing market boom.<\/p>\n

Additionally, historically low mortgage interest rates promoted real estate activity for potential buyers who could afford to purchase a home. Those who previously considered buying a property grew more inclined to take advantage of rates that reached lows of 2.65%<\/a> in January 2021. As more buyers looked upstate, local housing markets witnessed accelerated activity.<\/p>\n

Low Supply Meets High Demand<\/h3>\n

While upstate New York home prices rose by 30%<\/a>, real estate costs still remained relatively low compared to big cities. However, small towns do not have as much available inventory as large co-op or condo buildings<\/a>, leaving some buyers without options. Those who still decided to purchase property engaged in bidding wars<\/a>, where multiple sellers attempted to secure a piece of attractive real estate.<\/p>\n

The pandemic simultaneously interrupted supply chains for materials like lumber, decreasing the rate of new home construction<\/a>. Even today, demand for homes in the upstate region continues to outpace supply. Those who wish to purchase property may need to wait for a desirable home that matches their search criteria.<\/p>\n

The Effects of Rising Interest Rates<\/h3>\n

Similar to many other cities and towns nationwide, 2022\u2019s rising interest rates forced some potential homebuyers out of the upstate New York market. Interest rates peaked at 7.08% in the Fall of 2022, slowly dropping to around 6.3%. While interest rates remain high, buyers realize that interest rates may not significantly drop in the near future, inspiring their homebuying process. However, inventory across the market remains low.<\/p>\n

After delaying a home purchase for several months or more, some homebuyers have decided not to wait much longer and returned to the market. Signs of rising activity indicate that upstate New York buyers appear willing to deal with higher rates to secure a home. Those looking to move upstate in 2023 will find that inventory remains low.<\/p>\n

Living in Upstate New York<\/h2>\n

Why would a homebuyer consider looking at properties in Upstate New York? If you want more space and perhaps a couple of acres of land, you can get a lot more for your money compared to the high cost per square foot of condos and co-ops in NYC. If you\u2019re ready to exchange city traffic hassles for a little, or a lot, of snowfall, you may want to spend time looking in farther-reaching areas of New York.<\/p>\n

Compared to the years leading up to the pandemic, homebuying in upstate New York has grown more appealing. Those who work primarily from home or on a hybrid basis can justify living farther from Manhattan as they will not spend as much time commuting to the office. Additionally, their NYC salaries stretch farther and provide more purchasing power in upstate real estate markets than they do in the competitive and higher-priced city boroughs. Potential buyers can consider how often they commute into areas like Midtown<\/a> to determine the ideal town<\/a> that matches their budget and provides a reasonable travel time.<\/p>\n

If you want to start a home search upstate, remember that each individual town and city has its own character. With a lower cost of living upstate, areas like the Catskills and the Hudson Valley, along with the capital region of Albany<\/a>, comprise self-contained housing markets influenced by factors outside of the NYC real estate market. At the southern end of the Hudson Valley, Westchester County<\/a> serves as a bridge between the city and the upstate New York real estate market. There, you\u2019ll find some of the most expensive homes outside of the city but also a link to a more suburban lifestyle.<\/p>\n

Learn more:<\/p>\n